Binance has introduced a new pre-market spot trading service, setting itself apart as the first crypto exchange to offer trading of actual tokens prior to their official spot market listing.
In a Wednesday press release, the exchange said the new service would allow its users to gain early exposure to new tokens, enhancing their trading strategies.
“We built Binance Pre-Market to meet user demand for pre-market spot trading, and enhance the Binance ecosystem so users can enjoy greater utility and token projects can extend their lifecycle on our platform,” Vishal Sacheendran, Binance Head of Regional Markets, said.
Binance’s Pre-Market Service Differentiates from Rivals
Unlike other exchanges that provide pre-market trading primarily through derivatives, Binance’s service offers real tokens for users to hold and trade during the pre-market phase.
This initiative distinguishes Binance from competitors such as Bybit and Coinbase.
Bybit, for instance, offers a pre-market spot trading service that relies on derivatives.
According to Bybit’s website, users must collateralize their assets in USDT as a guarantee for settlement, indicating that they are not dealing with actual tokens during the pre-market period.
Meanwhile, Coinbase International’s “pre-launch markets” service involves trading perpetual futures contracts for tokens yet to be launched, which convert into standard perpetual futures once the tokens are listed on spot exchanges.
The Binance Pre-Market service is a collaborative effort between Binance Spot and Binance Launchpool, a platform allowing users to earn new project tokens by staking other cryptocurrencies.
Only selected Launchpool tokens will be eligible for pre-market trading.
Currently, these tokens are held until the official spot listing, but the new service will enable users to trade them immediately, albeit with restrictions on withdrawals, transfers, and deposits until the official listing.
Binance will announce when a Launchpool project becomes available for pre-market trading, including its start date.
Once pre-market trading begins, all Binance users can trade the “pre-market” tagged tokens.
The pre-market period will conclude at least four hours before the official spot trading, with a separate announcement for the listing.
However, the service is not available in certain jurisdictions, including the U.S., Canada, Dubai, Japan, the Netherlands, Russia, and Spain, due to regulatory restrictions.
Binance Aids India Bust $47.6M Fiewin Gaming Scam
Earlier today, Binance also revealed that it has played a pivotal role in assisting India’s Enforcement Directorate (ED) in dismantling a $47.6 million gaming scam linked to the Fiewin app.
The scam involved luring victims into online betting and gaming, promising easy earnings before seizing their funds.
According to a press release shared with Cryptonews.com, Binance’s Financial Intelligence Unit (FIU) provided crucial information that helped trace the funds and expose the fraud network.
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